It is no accident as to why Albert Einstein named Compound Interest the 8th Wonder Of The World.. He was a smart man.
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This is a huge topic (One of my favorites) and I probably won't get through everything in this post. Let's discuss what exponential growth can teach us...
Exponential growth and compound interest are clear in various factors. One of which, you will see that they both gather the bulk of their 'value' and the ending stages of the compounding period. So much that it actually makes the beginning stages incalculably minute.
This graph shows exactly that.
How Does This Help In Life?
It can make any person absolutely wealthy beyond any measure!! I will talk more in detail in an upcoming post, but just know if you are the kind of person looking to attract wealth, and I mean serious wealth, then worry no more, because I can help :) Stay in touch for my next post and I will explain.
But talking about compounding, and exponential growth, the power in the principal stages is able to add up to make quantum leaps in due time.
If you don't believe my judgement, then I will repeat that Albert Einstein didn't name it one of the Wonders Of The World for nothing.
And yeah, sorry if this isn't the funnest post, but it's a MUST for the buildup to explain true wealth!
Compound interest isn't just the money you earn on your money from your bank investment.. It applies to everything in life. It is necessary for turning anything average into something great!
Compound interest is also multipliable from it's principle amount. In a nutshell what this means is, $5 gaining 10% per year will be $30.02 after 18 years. Halving that interest rate to 5%, most people would assume the amount after 18 years would be $15.01, but it would be in fact $12.28.
Why? It creates a negative-compound.
Yet, if you kept the same rate of 10%, but halved the principal $5 to $2.50, the end amount after 18 years would simply be worth half... $15.01.
With that being said, it is important to make quantum leaps in whatever it is you do. The people that set themselves up the strongest when starting something, are always the ones to finish at the top. It's simply the Law Of Averages.
Hope you were able to take something from this :) I kinda just got everything out of my head that I have been pondering about the last few months about growing :P
Lookout for my next post. I will reveal how absolutely anyone can become INCREDIBLY WEALTHY.
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The earlier in your life you take advantage of this concept the better you are doing to do financially in life.. Thanks for a great post.
See, when it comes to the topic, there are many factors to be considered to create incredible success, but nothing beats time. Thanks. I'm glad you enjoyed it :)
Congratulations! Nice post
Thank you brother! Thanks for being consistent :)
Let's continue the discussion with your recommendations for safe investments that offer competitive compound interest yields.
I love that idea @mindposeidon! Thanks for your feedback :) I think that'll be a fun topic. I have a few pretty amazing investments right off the bat!
This is gold! Compound interest is one of the things I always try to think about when I invest. Masternodes and staking for example in crypto is a really amazing example of this.
Great writing, following for more!
It's the power of everything that makes anything great :) Thank you for your response, it is appreciated!
I will be discussing the following topic to this in the next post. Stay in touch if you are interested :) Talk soon
Gosh my brain was exploding with all the maths lol long time since I have thought about math 😁 but it is a good read to let us thinking 😄
Thanks brother! I appreciate you reading my content :) Yeah, it was a little technical haha :P
I am not the biggest fan of reading but that is something I wanted to improve and change for a while already. So maybe now it is the time.
Yeah man! Reading is a super powerful way to expand your knowledge! And comprehension! At one stage I used to read a book a day.
Go watch Tai Lopez for tips on how to read to improve yourself.
This post received a 2.6% upvote from @randowhale thanks to @enazwahsdarb! For more information, click here!
@enazwahsdarb Upvoted And Visit my blog plz thanks alot
Thanks :) Did you read the info? I believe it's very valuable! Just saying, it's usually best to try and create a bit of rapport with the person you're trying to attract (Relate with them by creating conversation), instead of jumping to what you want in the first message. But I will check you out this time, just helping you for the future when making comments :)
Are you trying to troll people?
This post has received a 1.21 % upvote from @booster thanks to: @enazwahsdarb.
@enazwahsdarb Great intro post to compounding interest, sir! I would like to add some value if I may. I do not own this idea, but I 100% employ it in my own portfolio. Compounding interest, when investing in index funds (funds that mirror the stock market/particular asset class without the high fees charged by funds that are run by managers) is greatly impacted when using DOLLAR COST AVERAGING -- essentially you automate a fixed amount of money, at fixed intervals (weekly, monthly, etc) to go straight from your paycheck to your investment account. By doing this, you AUTOMATICALLY employ the principles advocated by Warren Buffet. Since you are putting in the same amount of money (should be % of your base pay) at the same time every month, your money will buy more stock when the price is lower (ideal) and less stock when the price is higher (also ideal). Hope this is intelligible!
Awesome input. I appreciate your effort. Yes, dollar cost averaging is probably the easiest way for a person to become wealthy without being to technical. It's great because it subsidizes the volatile conditions tbats the markets could have over time.
I wouldn't say its exactly what Warren Buffett does, however.. He just puts all of his mo ey towards his investments haha. He took no excuses and jumped in!
But dolar averaging is great for people who work a job and don't know how to get wealthy!
Thanks for stopping by and absorbing the value in my content! This post was not actually really the money side, but rather the concept. My next post will be about wealth creation :P
When I referenced Warren Buffett, I was referring to value investing. The automation ensures you are not making conscious decisions to buy stock at the wrong time. Rather, buying more when the price is lower and buying less when the price is higher is in sync with his general mantra. For further reading, Burton Malkiel is the main preacher of Dollar Cost Averaging, a method advocated by him and Jack Vogel of Vanguard.
It's true. And Warren Buffett also had to adjust the way he did things over time.. :) Originally it was the Graham method for picking up cigarette-bud type companies for next to nothing (Pretty much penny stocks), but as capital increased, moving more to buying great companies at fair prices, rather than fair companies at great prices :)
Yes, I usually refrain from going all the way back to Benjamin and Graham and mentioning how Buffett was an actual student of Graham at Columbia University -- however you clearly know your material. I have invested a great deal of time in this area of study as well!
Thanks brother :) I would suggest writing content on the things you know about best as well as the things you are most passionate about! People will tend to pick-up that you are serious about what you do :) Just a bit advice with regards to your content :) Hustle hard. I think you could do really well on this platform if you focus on what you truly are passionate about discussing.
Banks of Course, Understand this well ( to your detriment).
You do know, that Einstein did not know, his own telephone number?
Well, its to your own detriment if you are not educated yourself. The banks use this concept but to a smaller extent, and I would say if a person puts a little effort into doing some research they can wildly surpass what the banks are producing :P
And yeah, Einstein was an interesting one.. He clearly knew how to divide his concentration to only focus on what was important.. Thanks for stopping by :) I will talk further on this topic and how it relates to wealth in the next post later today.
Brilliant Post
Indeed the 8th Wonder of the World. Every little Bit Counts :)
You received a 3.00 Upvote from @worldclassplayer
Thanks. I like that you guys are actually paying attention to the posts.. I have noticed the upvotes take really long after i send in SBD.. any reason? Because some of my earlier posts couldnt recieve
Enazwahsdarb, I found compound interest for crypto, check out my blog post and explore if you're interested. https://steemit.com/bitcoin/@oakheartgames/compounding-bitcoin-interest-for-people-not-banks